/ 29 May 2009

Gauteng agency defends wage hikes

The Gauteng Enterprise Propeller, the province's agency established to fund small businesses, has defended a 40% salary increase for top management.

The Gauteng Enterprise Propeller (GEP) — an agency established to fund small businesses — has defended a 40% salary increase for top management that led to a province-wide strike of employees on Friday.

GEP employees belonging to the National Education Health and Allied Workers’ Union (Nehawu), protested in front of the agency’s head office in Craighall Park, Johannesburg, demanding that their calls for wage increases be heard.

Nehawu officials allege that the GEP’s management has dismissed their demands for salary negotiations and that chief executive David Morobe has been unavailable to address their concerns.

‘This agency is part of the Alex Mafia [a group of business people and government officials said to be close to former premier Paul Mashatile]. Our suspicion is that it was used as a vehicle to channel tenders to friends and relatives. This is part of the Mashatile legacy,” said Nehawu representative Bongani Sibiya outside the GEP’s head office.

Nehawu’s leadership was due to meet the GEP management on Friday afternoon. GEP spokesperson Thembela Mgudlwa dismissed the union’s claims, saying the agency had engaged with Nehawu since its inception. This, according to Mgudlwa, led to the wage increases in 2008 and 2009.

Mgudlwa defended the 40% increases for top management that were signed off by Mashatile during his tenure as premier.

‘Management increases were as a result of recommendations by the board to adjust executive salaries to be in line with those of agencies with the same responsibilities and complexities as that of the Gauteng Enterprise Propeller,” she said.

Mgudlwa also dismissed allegations that GEP funds were mismanaged and that a member of management travelled abroad ‘at least once a week”.

‘Should any member of staff or public find irregular business practices, the Gauteng Enterprise Propeller has a whistle blowing hotline, which is independently managed, and is accessible to both GEP employees and the public to anonymously report any form of unethical behaviour within the organisation.”

Mgudlwa conceded that the GEP has not been assisting small, medium and micro-sized enterprises financially since September 2008 due to a depleted budget, caused by an ‘increased uptake by SMMEs”.

She highlighted the fact that the GEP was competing for funds with other agencies and departments in Gauteng.